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Wednesday, August 19, 2020
Volume 113, Issue 8
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ALBERTA Open Farm DAYS A farm experience Open House bringing growers and consumers together MOUSH JOHN PHOTO
Kerri Giesbrecht with her son Ryley pose for a picture on Alberta Open Farm Days at the family farm, called Lil Ryley farms, where visitors enjoyed the opportunity to tour the farm, view demonstrations of machinery, and u-pick their own fresh vegetables. The farm is located north of Bawlf. See story Pg 24.
Flagstaff and other municipalities remain concerned about changes to assessment model for oil and gas Editor
The Rural Municipalities of Alberta (RMA), an independent association comprising Alberta’s 69 counties and municipal districts, is extremely concerned with changes to the assessment model for oil and gas properties that are currently being considered by the province. RMA President Al Kemmere says, “RMA participated in the assessment model review process by explaining the impacts that the changes being proposed by government, and supported by industry, would have on the ability of municipalities to maintain infrastructure, provide services, and in some cases, remain viable. “Despite RMA’s input, the changes proposed became steadily more detrimental to municipalities as the process continued.” He says that the confidential nature of the consultation process with municipal and industry stakeholders taking part prevented the RMA from sharing the progress with Alberta municipalities. Rural MLAs were also not part of the consultation process, and were informed of the results less than two weeks ago. According to the RMC, all scenarios being considered would have major impacts on rural municipalities.
Under the scenario favoured by industry stakeholders, an average rural municipality would lose 12.4 per cent of their revenues in the first year of implementation, with 11 RMA members losing over 20 per cent. Collectively, rural municipalities would lose over $480 million in 2021 alone under the industry-supported scenario. “The proposed changes prioritize reducing industry costs with little focus on municipal impacts,” Kemmere explained. “Some in industry and government view municipal taxes as a barrier to economic development. In reality, municipalities manage the roads and bridges
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RMA says, “Based on confidential company data shared with RMA during the consultation, the proposed changes will disproportionately benefit Alberta’s largest oil and gas companies. “Under some scenarios, up to 54 per cent of Alberta’s small oil and gas companies (assessed assets less than $100 million) would actually face an increase in their assessment. In contrast, large international companies would see the greatest cost reductions, with no requirement to reinvest any savings into Alberta. Kemmere stated, “The province has repeatedly emphasized industry competitiveness as the driver for this review, which is clear when looking at how badly municipalities would be impacted. However, RMA is also concerned that any benefits will go to large companies, while many small companies that would reinvest savings locally would face assessment increases.” The RMA says it is also concerned that the province has not considered the impacts that the changes will have on Alberta’s villages, towns, and cities, especially for costs related to education, seniors housing, and policing. The amount each municipality pays is determined in part by the assessed value of the properties within their boundaries. If rural assessment values drop significantly, urban municipalities will see their contri See ASSESSMENT P10
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Leslie Cholowsky
“This will drastically impact our municipality,
our urbans, and our entire region. This is devastating to us if this model goes through.”
Flagstaff County Ass’t CAO Brent Hoyland
that allow access to resources and provide the services that oil and gas companies and their employees rely on. “This review has not considered how municipalities will be impacted by the changes or the domino effects the changes will have on entire regions.” An RMA independent analysis questions how much the proposed changes will actually enhance the competitiveness of Alberta’s oil and gas industry.